“Standing With The People”: Democratic Governors and Statehouse Candidates To Adopt Obama’s Minimum-Wage Message
Democratic governors and candidates competing in battleground states are planning to make a minimum-wage increase a centerpiece of this year’s campaigns, taking the baton from President Obama’s State of the Union address Tuesday night, according to a memo shared with National Journal.
Raising the wage was a core part of Obama’s larger theme of boosting “opportunity” for all, and it’s a policy that Democrats running for statehouses think will help them politically, according to the memo from the Democratic Governors Association.
“No issue better crystalizes the broader debate between 2014 Democratic and Republican gubernatorial candidates than that of a minimum wage hike,” DGA Communications Director Danny Kanner says in the memo.
This is a big year for the Democratic Governors Association, given the number of Republican governors swept in during the 2010 wave who are now up for reelection.
Republican governors from Florida to Wisconsin have consistently opposed efforts to raise the minimum wage, and Dems think that choice will come back to bite the GOP. The DGA points to a recent Wall Street Journal poll showing 63 percent of Americans support raising the wage and a separate Quinnipiac poll showing a plurality of Republican voters agree.
While it’s not surprising that Democrats would echo the president on a central policy goal, raising the minimum wage has until recently been seen as the domain of the party’s progressive wing and an issue that candidates in battleground states might shy away from.
But that doesn’t seem to be the case when it comes to a handful of gubernatorial races, at least. In Maine, while Republican Gov. Paul LePage has vetoed legislation to raise the minimum wage, Rep. Michael Michaud, the presumed Democratic nominee, cosponsored a bill in the House to raise the wage nationwide.
Democrat Mark Schauer, who is hoping to oust Michigan Gov. Rick Snyder, has proposed boosting the wage to $9.25 an hour and indexing it to inflation, and said he would make hiking it a top priority if elected.
In Iowa, Jack Hatch wants to go even further and raise the wage to $10.10, which would give the important political state the highest minimum wage in the country. Charlie Crist, the Republican-turned-Democrat former governor, who is running to reclaim his old seat in Florida’s statehouse, also supports setting the wage at $10.10.
Meanwhile in Illinois, where Democrats are hoping to defend Gov. Pat Quinn as he heads into a tough reelection battle, all four Republican challengers oppose Quinn’s proposal to boost the wage.
And Democrats think the message will resonate as well in redder states like Kansas, where they’re hoping to push aside Republican Gov. Sam Brownback.
Kanner says Democrats will use the minimum wage to present a larger economic message.
“These are two starkly different economic philosophies, and the minimum wage debate makes that clear. In this case, Democrats are standing with the American people while Republicans, once again, thumb their nose at them,” he said.
By: Alex Seitz-Wald, The National Journal, January 29, 2014
“Where There’s A Will, There’s A Way”: Will Republicans Raise The Minimum Wage? History Says Yes
Republicans may not have applauded when President Obama called for Congress to raise the minimum wage in his State of the Union address, but if history is any guide, it’s a good bet they will eventually do just that.
Since the minimum wage was established in 1938, every president, Republican or Democrat, except for Ronald Reagan has signed an increase into law. And in almost every instance, the bill came to the president’s desk with a big bipartisan vote from Congress. When Democrats crank up the pressure — and are willing to compromise with business interests — Republicans have routinely relented.
The most recent increase was in 2007, when nearly every Senate Republican and more than 60 percent of the House Republican Caucus voted in favor. And if you think the Republican Party was wildly more moderate back then, here are a few of the people that voted “Aye”: Michele Bachmann, Todd Akin, Bobby Jindal, and David Vitter.
What was different than today was the person sitting in the Oval Office: A chastened Republican giving his fellow conservatives political cover. But two other past increases played out against a similar political backdrop as today. In 1996 and 1949, congressional conservatives faced a Democratic president they loathed, yet were unwilling to face the voters and say they blocked a wage hike.
In the presidential election year of 1996, Speaker Newt Gingrich quietly signaled to his House caucus that they should let the increase go through after procedural stalling prompted the AFL-CIO to pound Republicans with television ads. Feeling the heat, 40 percent of House Republicans eventually crossed the aisle.
Over in the Senate, Majority Leader Bob Dole had been fighting the increase. But he resigned his Senate seat in June to jumpstart his campaign for president. Soon after, new Majority Leader Trent Lott, facing a Democratic threat to propose minimum wage amendments to every bill that reached the floor, backed down and allowed the bill to come to a vote. More than half of the caucus broke ranks.
In 1949, President Harry Truman just had been elected to his first full term in the most famous comeback in political history, thanks to a fiercely populist campaign that also reclaimed control of Congress to the Democrats. Yet it was not a liberal Congress. An informal alliance of conservative Southern Democrats and Republicans remained in force, and would eventually squelch most of Truman’s “Fair Deal” proposals. But the widely popular minimum wage was a rare exception.
Truman’s proposed increase was particularly ambitious, almost doubling the base hourly rate from 40 cents to 75 cents (from $3.81 to $7.14 in today’s dollars) and dramatically expanding the pool of workers covered by the law. As Truman historian Mark Byrnes recently recounted, conservatives did try to stop Truman, “but not by using today’s obstructionist tactics. They actually proposed an alternative: Limiting the increase to 65 cents an hour, indexing the wage to inflation, and eliminating the expansion of workers covered.” In the end, they struck a hard bargain. Truman got his wage increase, but as Byrnes notes, “in the short run [the compromise] actually reduced the number of workers covered by the law.”
In fact, all of the minimum wage increases mentioned above came with sops to the business lobby that eased Republican opposition. The 1996 and 2007 bills came with small business tax cuts and failed to increase the minimum wage for waiters who receive tips. That minimum remains stuck at $2.13.
Is this history relevant today? Or is the current Tea Party hatred of President Obama too much to overcome?
Consider the following:
The popularity of the issue is as strong as ever: In a Quinnipiac poll from earlier this month, 71 percent support an increase, including 52 percent of Republicans.
As I wrote here back in October, Speaker John Boehner has proven vulnerable to Democratic pressure tactics when Democrats are on extremely firm political ground — providing disaster relief, keeping the government open, and raising taxes on the wealthy to avert a tax hike on the middle class.
Finally, the Democratic proposal that Obama endorsed this week is a highly ambitious one — akin to Truman’s 1949 opening bid — which leaves much room for compromise.
The Harkin-Miller bill envisions a $10.10 hourly minimum wage, which would raise the floor to one of the highest levels in history after accounting for inflation. It would then index the minimum wage to inflation, meaning it would stay at that high level forever. And it jacks up the hourly minimum of tipped workers to about $7.
Poll numbers were not enough to break Boehner on an issue like gun control, because the gun lobby is politically potent and implacable. But history shows the business lobbies generally opposed to the minimum wage are far more willing to deal. And there is room to maneuver on the final rate, on indexing, and on tipped workers.
Where a final deal gets tricky is not how Democrats can scale back their opening bid, it’s what sweeteners can be concocted for the business lobby to attract Republican support. The tax break model of the 1996 and 2007 bills will be much harder to pull off under the tight budget caps both parties accepted and wrote into law this month.
But where there’s a will, there’s a way. Democrats have an abundance of will, and Republicans will need a way out. As history shows, they always take it.
By: Bill Scher, The Week, January 30, 2014
“Raising The Minimum Is The Bare Minimum”: What America Needs Is To Shift Income From Capital To Labor
In 1995, when John Sweeney ran the first and as-yet-only insurgent campaign for the presidency of the AFL-CIO, his platform took the form of a book entitled America Needs a Raise. If that title rang true in 1995, it clangs with deafening authority today.
Which leads us to the only problem with the current campaigns to raise the minimum wage: It’s not just workers at the low end of the wage scale who need a raise. It’s not just the work of the bottom 9 percent of labor force that is undervalued. It’s the work of the bottom 90 percent.
Conservatives who oppose raising the minimum wage argue that we need to address the decline of the family and the failure of the schools if we are to arrest the income decline at the bottom of the economic ladder. But how then to explain the income stagnation of those who are, say, on the 85th rung of a 100-rung ladder? How does the decline of the family explain why all gains in productivity now go to the richest 10 percent of Americans only? And are teachers unions really to blame for the fact that wages now constitute the lowest share of Gross Domestic Product since the government started measuring shares, and that corporate profits now constitute the highest share?
We need to raise the minimum wage, but that’s only the start. Even more fundamentally, we must reverse the deeper and more profound redistribution of wealth that has now plagued the nation for several decades: that from capital to labor.
For as income from work declines for the nation as a whole—inflation-adjusted median hourly wages are now more than $1.50 lower than they were in 1972—income from investment soars. The stock markets are hitting record highs, and major corporations are using the $1.5 trillion they have lying around to raise not wages but dividends. They are also using some of that cash to buy back their own stock, which raises the value of the outstanding shares, to which, happily, most CEO’s compensation packages are linked.
The institutions that once ensured that American workers actually got their share of the pie—unions—have been so thoroughly battered down that they can no longer effectively bargain for raises. That leaves that other instrument of the popular will— the state—as the sole remaining institution that can bargain for workers. That’s why the minimum wage, the living wage and the Earned Income Tax Credit have taken on a greater significance than they previously held: They not only raise the incomes of the poor, but are the last remaining vehicles for raising wages.
That’s why just stopping with raising the minimum, important though that be to the nation’s economic and moral health, is nowhere near enough. Making it safe again for workers to try to join unions is a necessity, too, but that’s a fight that labor has been waging for half-a-century with nothing to show for it. The left needs to battle on other fronts as well.
We could begin by shifting the tax burden from labor to capital—after all, income in America has long been shifted from labor to capital. We could abolish the payroll tax on the first $25,000 that people make, substituting for it a higher threshold on taxable income. We could raise the tax rates on capital gains and dividends not just to the same levels as income derived from work but higher still. And we could explicitly designate some of the revenue from capital income to go to a much expanded Earned Income Tax Credit—expanded not just by making the payments more generous, but also by raising the criterion for eligibility well above the government’s poverty threshold.
By explicitly taking back from capital some of the wealth it has taken from labor, government would begin to address the root causes of economic inequality. Not all of them, to be sure: The stratospheric salaries that top corporate executives and Wall Street traders command aren’t capital income as such. One way to rein in executive pay might be to set corporate tax rates by the size of the gap between top executives’ and median workers’ pay, the data on which the Securities and Exchange Commission is supposed to make public under the terms of Dodd-Frank. Or it might be to set corporate tax rates based whether the corporation has a stakeholder or a shareholder board. In Germany, corporations are required to have equal numbers of employee and management representatives on their boards, which has effectively reduced CEO pay at most German companies to a multiple of 10 or 12 times that of its median employee, not the 200 or 300 times that’s the norm in the U.S.
If we want to address economic equality, we need to follow the money. In recent decades, as a result not just of globalization and technology but also of the decline of unions and the rising political power of the rich, the money has almost entirely gone to the rich—in the current recovery, fully 95 percent of income growth to the top 1 percent. So by all means, raise the minimum wage. But don’t stop there.
By: Harold Meyerson, The American Prospect, January 22, 2014
“Delusional Pro-Poverty Agenda”: This Is Why The GOP Should Be Afraid Of The Minimum Wage In 2014
Illinois businessman Bruce Rauner, a top candidate for the Republican nomination for governor, demonstrated this week why Democrats are eager to use the minimum wage as a political cudgel in the 2014 midterm elections.
On Tuesday, Rauner suggested reducing the state’s $8.25-per-hour minimum wage to the national level, a $1-per-hour reduction.
“I will advocate moving the Illinois minimum wage back to the national minimum wage. I think we’ve got to be competitive here in Illinois,” Rauner told Illinois Radio WGBZ.
Rauner’s stance sharply contrasts that of Governor Pat Quinn (D), who has said that he wants to raise the minimum wage to $10 per hour. But it’s not particularly controversial in the context of the Republican primary. After all, each of his rivals for the nomination — Kirk Dillard, Dan Rutherford and Bill Brady — oppose raising the wage. Still, throughout the rest of the state, the idea of cutting the already insufficient minimum wage sparked instant outrage.
As The Chicago Sun-Times reports, the backlash to Rauner’s plan was swift and severe.
“In my 26 years in the Legislature, I’ve seen many candidates roll out anti-poverty plans, but Bruce Rauner is the only candidate to roll out a pro-poverty plan,” Democratic state representative Lou Lang said.
“He’s delusional if he thinks that the General Assembly would bow to his class warfare on low-income workers. He needs to have his delusion shaken up,” Lang added. “He needs to come to grips with the fact that the era of robber barons is over, and impoverishing workers is no longer an economic growth strategy.”
Quinn spokeswoman Brooke Anderson similarly blasted Rauner, insisting that “instead of alleviating poverty, this cruel and backwards proposal would take thousands of dollars from working people who are doing some of the hardest, most difficult jobs in our society.”
And Chicago labor leader Karen Lewis took even more direct aim at Rauner, who made a fortune in private equity, charging, “It is ironic that billionaire Rauner, who reported $53 million in earnings last year, or $7.36 per second, is calling for a reduction in the state’s minimum wage.
“While he sits back and ponders where to take his next exotic vacation or which mansion to lay his head, others are trying to survive in a climate of foreclosures, rising medical costs, and the shuttering of neighborhood schools,” she added. “Instead of pledging a war on poverty he is vowing to advance a war on poor and working-class people.”
The heated response to Rauner’s proposal was stunningly successful; within days, he was apparently scared away from it.
“I made a mistake. I was flippant and I was quick,” Rauner told the Chicago Tribune on Wednesday. “I should have said, ‘Tie the Illinois minimum wage to the national wage and, in that context, with other changes in being pro-business, I support raising the national minimum wage.’ I’m OK with that.”
Rauner expanded on his new position — that after cutting the minimum wage, we should raise it — in a Tribune op-ed on Thursday, writing, “Raising the national minimum wage would raise the level in Illinois and in our neighboring states, eliminating our competitive disadvantage. I support that.”
It’s not hard to understand how Rauner went from advocating a minimum-wage cut to advocating a raise in just a few days. Polls have consistently found that Illinois voters overwhelmingly favor raising the minimum wage to $10 per hour (a recent survey from left-leaning Public Policy Polling pegged support at 58 percent). It is a very difficult political environment to be running against a measure that could lift millions out of poverty.
Increasing the minimum wage isn’t just popular in Illinois; it has broad national appeal as well. So it’s not surprising that Democrats are planning to use the issue as a centerpiece of their 2014 campaigns. And if other Republicans mirror Rauner’s apparent fear of being attacked on the issue, their strategy could prove very successful.
By: Henry Decker, The National Memo, January 9, 2014
“The Social Justice Majority”: We Are Far More United Than Our Politics Permit Us To Be
Why are we arguing about issues that were settled decades ago? Why, for example, is it so hard to extend unemployment insurance at a time when the jobless rate nationally is still at 7 percent and higher than that in 21 states ?
As the Senate votes this week on help for the unemployed, Democrats will be scrambling to win support from the handful of Republicans they’ll need to get the required 60 votes. The GOP-led House, in the meantime, shows no signs of moving on the matter.
It hasn’t always been like this. It was not some socialist but a president named George W. Bush who declared: “These Americans rely on their unemployment benefits to pay for the mortgage or rent, food and other critical bills. They need our assistance in these difficult times, and we cannot let them down.”
Bush spoke those words, as Jason Sattler of the National Memo noted, in December 2002, when the unemployment rate was a full point lower than it is today.
Similarly, raising the minimum wage wasn’t always so complicated. The parties had their differences, but a solid block of Republicans once saw regular increases as a just way of spreading the benefits of economic growth.
The contention over unemployment insurance and the minimum wage reflects the larger problem in American politics. Rather than discussing what we need to do to secure our future, we are spending most of our energy re-litigating the past.
A substantial part of the conservative movement is now determined to blow up the national consensus that has prevailed since the Progressive and New Deal eras. The consensus envisions a capitalist economy tempered by government intervention to reduce inequities and soften the cruelties that the normal workings of the market can sometimes inflict.
This bipartisan understanding meant that conservatives such as Bush fully accepted that it was shameful to allow fellow citizens who had done nothing wrong to suffer because they had been temporarily overwhelmed by economic forces beyond their control.
The current debate is flawed for another reason: It persistently exaggerates how divided we are. Of course there are vast cultural differences across our nation. It’s not just a cliche that the worldview of a white evangelical Christian in Mississippi is quite distant from the outlook of a secularist on Manhattan’s Upper West Side. African Americans, Latinos, Asians and whites can offer rather diverse interpretations of the meaning of our national story.
But on core questions involving social justice, we are far more united than our politics permit us to be. A survey released at the end of December by Hart Research, a Democratic polling firm, found that Americans supported extending unemployment insurance by a margin of 55 percent to 34 percent. Several recent surveys, including a Fox News poll, found that about two-thirds of Americans support an increase in the minimum wage.
This leads to two conclusions. The first is that most Americans broadly accept the New Deal consensus. We may disagree about this or that regulation or spending program. We may squabble over exactly how our approaches to policy should be updated for a new century. But there is far more agreement among the American people than there is among Washington lobbies, members of Congress or political commentators on the core proposition that government should help us through rough patches and guarantee a certain level of economic fairness.
The second conclusion is that we have to stop letting the politics of culture wars so dominate our thinking that we forget how much we share when it comes to life’s day-to-day struggles and what we can do to ease them. Disputes over personal morals and lifestyle choices may get more page views or rating points, but they do little to improve anyone’s standard of living.
The minimum-wage increase is typically labeled a “liberal” idea. Yet many grass-roots Republicans see respect for those who work hard as rooted in sound conservative principles demanding decent compensation for a day’s labor. An evangelical might see fair pay as a biblical imperative while a secularist might view the question through a more worldly philosophical prism. Nonetheless, their distinctive reasoning processes lead them to the same place.
President Obama’s old line challenging the idea of red and blue Americas unalterably opposed to each other seems terribly outdated or naive. Electorally, at least, those divisions are still painfully obvious. But on matters of economic justice, we shouldn’t let a defective political system distract us from what we have in common.
By: E. J. Dionne, Jr., Opinion Writer, The Washington Post, January 5, 2014
Share This Blog
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
mykeystrokes.com 